2021 Draft Budget and Business Plan - City of Cambridge
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2021 Draft Budget and Business Plan cambridge.ca/budget
cambridge.ca/budget
TABLE OF CONTENTS
Budget Overview ......................................................2 Capital Forecast Details.....................................200
Cambridge at a Glance ...................................... 3 Appendices ............................................................ 214
Cambridge City Council .................................... 4 Appendix A
Glossary ..............................................................214
City Administration Structure ......................... 5
Appendix B
Message from the City Manager ..................... 6
Downtown Cambridge Business
Message from the Chief Financial Officer ..........7
Improvement Area (BIA) Budgets..............220
Community Satisfaction Survey ...................... 8
Appendix C
Budget at a Glance ............................................. 11 External Funding ............................................. 222
Who Does What? ............................................... 16 Appendix D
How Are Property Taxes Used? .................... 17 Consolidated Budget .....................................224
The Budget Process .......................................... 18 Appendix E
Capital Project Detail Sheets ....................... 227
Budget by Strategic Plan ...................................... 19
Appendix F
Budget Summaries ................................................ 34
Reserve and Reserve Fund Descriptions . 309
Tax-Supported Operating Budget Summary .34
Appendix G
Water Utility Budget Summary ..................... 56 Municipal Fees and Charges .........................316
Capital Budget Summary ............................... 65 Appendix H
Reserve and Reserve Funds ................................ 83 Additional City of Cambridge Statistics ...367
City Business Plans ............................................... 89 Appendix I
City-Wide Key Performance Indicators.......90 Financial Policies.............................................370
Tax-Supported Business Plans
By Division .......................................................... 93
Water Utility Business Plans By Division ...192
Budget Overview Page 2 City of Cambridge 2021 Draft Budget and Business Plan
Cambridge at a Glance
A MODERN AND INCLUSIVE CITY
PROPERTY VALUES
The City of Cambridge was officially
The average household
formed by the Province of Ontario on assessment value used to
January 1, 1973. calculate property taxes is
$333,200.
Made up of the former communities of
Galt, Preston, Hespeler and Blair, the
history of this area dates to a far earlier P O P U L AT I O N
period.
A 2019 year-end population of
Today, Cambridge is a modern, inclusive 139,350 within an estimated
city with a rich architectural heritage 50,420 households.
providing a window to that past.
Economic diversity, natural beauty, WO R K F O R C E
and a vibrant culture have helped to
Cambridge continues to build
make Cambridge the second largest
a skilled and diverse worforce
community within the fast-growing
of 77,500 with over 11,522
Waterloo Region.
businesses.
LAKE I N T E R N AT I O N A L AC C E S S
HURON
BARRIE Just 50 minutes to Toronto
Pearson International Airport
and 20 minutes to Region of
Waterloo International Airport.
KITCHENER LAKE
TORONTO ONTARIO
WATERLOO
LO G I S T I C S
CAMBRIDGE
HAMILTON Convenient access to Highway
LONDON
BUFFALO 401 for direct routes to major
LAKE
cities throughout Canada and
ERIE
the United States.
www.cambridge.ca/budget Page 3
Cambridge City Council
DONNA REID MIKE DEVINE MIKE MANN JAN LIGGETT
WARD 1 COUNCILLOR WARD 2 COUNCILLOR WARD 3 COUNCILLOR WARD 4 COUNCILLOR
KATHRYN MCGARRY PAM WOLF SHANNON ADSHADE SCOTT HAMILTON NICHOLAS ERMETA
MAYOR WARD 5 COUNCILLOR WARD 6 COUNCILLOR WARD 7 COUNCILLOR WARD 8 COUNCILLOR
G E T TO K N OW YO U R 2 0 1 8 - 2 0 2 2 E L E C T E D CO U N C I L
The City of Cambridge is governed by an elected Council of nine members: the Mayor and eight
Councillors who serve a four-year term.
The Mayor and Council are responsible for developing a long-range vision for the future of the
community. Council establishes policies that affect the overall operation of the community and are
responsive to residents’ needs and wishes.
To ensure that these policies are carried out and that the entire community receives equitable service,
Council appoints a City Manager who is directly responsible for the City’s administration.
Page 4 City of Cambridge 2021 Draft Budget and Business Plan
City Administrative Structure
The Corporate Leadership Executive Team
is led by the City Manager and includes
the Deputy City Managers of each city
department.
The Corporate Leadership Executive Team is
responsible for implementing the direction
set out by City Council. This includes the
provision of community-focused services K ATHRYN MCGARRY
MAYOR
of the highest quality, overseeing the MAYOR AND COUNCIL
responsible and sustainable management
of resources, and monitoring progress for
optimal operations
The City is committed to the core values
of Integrity, Respect, Inclusiveness and
Service. These values guide the Corporate
Leadership Team as they implement the
goals and objectives outlined in the strategic DAVID CALDER
CITY MANAGER
plan under three themes: People, Places and
OFFICE OF THE CITY MANAGER
Prosperity.
Corporate Communications
Legal Services
DAVE BUSH CHERYL ZAHNLEITER HARDY BROMBERG YOGESH SHAH
DEPUTY CITY MANAGER DEPUTY CITY MANAGER DEPUTY CITY MANAGER DEPUTY CITY MANAGER
CORPORATE SERVICES CORPORATE ENTERPRISE COMMUNITY DEVELOPMENT INFRASTRUCTURE
Clerks Services Facilities Building Services SERVICES*
Financial Services Building Design & Construction Engineering & Transportation Environmental Services
Fire Services Corporate Strategy Recreation/Arts & Culture Operations
Human Resources Economic Development Planning Services Project Management Offi ce/
Technology Services Risk Management Asset Management
* Due to an organizational restructure in September 2020, the information presented in this document is presented under the previous Administra-
tive Structure. Under the former structure Environmental Services and Operations were under the responsibility of Community Development and
Project Management Office/Asset Management were under the responsibility of Corporate Enterprise.
www.cambridge.ca/budget Page 5
Message from the City Manager Earlier in March, when COVID-19 first emerged, we had little idea of the challenges we would face. Since then, our internal task force and the regional pandemic control group, have been working non-stop with Public Health to protect our community and slow the spread of the virus. We have learned how to serve our community under a “new normal” of social distancing, remote work, limited social gatherings, unpredictable revenue sources and evolving public health restrictions. The pandemic has had major financial impacts on the City, across almost every sector, and we know our local businesses and residents have been struggling. This budget reflects our financial reality. Our goal is to help lessen the tax burden on our residents and to support economic recovery. It is why we are recommending a modest 1 per cent tax increase, which is less than the cost of inflation. The 2021 Budget is a conservative one. It represents a balance between meeting the needs of our growing community, delivering excellent service levels, and working within the constraints of our resources – all during a public health emergency. I am particularly proud to deliver this budget under the current circumstances. Most of the initiatives contained in the 2021 Budget are the continuation of important multi- year projects that will have a positive impact on the community. This includes the design of the recreation complex, construction of the Preston Auditorium and Fountain Street Soccer Complex, trail improvements, stormwater infrastructure, the Beverly Street pedestrian underpass design and other road work. These taxpayer funded community investments will assist with increasing private sector job creation and local economic recovery. In 2021, we will continue to focus on emergency and pandemic preparedness, community well- being and safety, and supporting our local businesses. We will be launching our revised strategic plan in the months ahead which will further define and guide City Council's priorities. I believe this is a prudent budget with a sensible approach moving forward. I encourage you to review the projects outlined in this document to gain a better understanding of our objectives for 2021. Take Care, David Calder, City Manager Page 6 City of Cambridge 2021 Draft Budget and Business Plan
Message from the Chief Financial Officer This year, the COVID-19 pandemic created significant financial pressure across all sectors of the City of Cambridge. Due to the emergency orders, the City lost revenues because of cancelled city programs, events, rentals and modified services, as well as delayed payments on property tax and water utility accounts. In addition, there have been many new and unexpected costs, related to personal protective equipment and implementing a range of safety measures. To offset costs, we made the difficult decision to lay off over 400 part-time, casual and contract workers in June. As well, the finance team created and implemented an aggressive Cost Containment Plan. This included a variety of measures, such as minimising overtime, halting several capital projects, reducing program supplies, halting staff recruitment and cancelling professional development. At the same time, Council and our regional partners advocated to the provincial and federal governments for emergency funding to help municipalities maintain services levels and reintroduce programs. I am very pleased that we received $3,069,100 in funding which, in combination with our cost containment efforts, has enabled us to bring forward this budget. Again this year, we have broken down the numbers to include a summary of the operating budget, your water utility bill and the capital investment plan in an effort to make this information more clear for residents. We have also outlined how services are divided between the Region and the City of Cambridge. The 2021 Budget aligns with our strategic plan and demonstrates how we are meeting our goals according to seven themes: Community Wellbeing; Governance and Leadership; Arts, Culture, Heritage and Architecture; Environment and Rivers; Economic Development and Tourism; Parks and Recreation; and Transportation and Infrastructure. It is the result of ongoing engagement on public priorities throughout the year, and was guided by community input and direction from City Council. Thank you to the residents who have contributed to the process and thank you to staff who have worked many hours to provide the budget for discussion. Sheryl Ayres, Chief Financial Officer www.cambridge.ca/budget Page 7
Community Satisfaction Survey In February 2020, the City retained Forum Research Inc. to conduct a community satisfaction survey that would provide vital statistics to inform the creation of the City's strategic plan, Cambridge Connected, which is currently underway. The purpose of the survey was to gauge residents’ satisfaction with City services and overall quality of life, to provide a benchmark for future work, and to identify current community priorities. Forum used a random digit dial (RDD) methodology, which means that everyone in Cambridge had an equal chance of being contacted, regardless of whether they use a landline or cell phone. Page 8 City of Cambridge 2021 Draft Budget and Business Plan
Community Satisfaction Survey
H I G H L I G H TS O F T H E S U RV E Y R E S U LTS I N C LU D E :
72% of respondents say that the quality of life in
Cambridge is good.
As summed up
73% of residents who have contacted the City were by its residents
satisfied with the service they received.
75% of respondents are happy with the value provided when asked to
by City programs and services.
87% of residents describe Cambridge as a welcoming
come up with one
community.
word to describe
78% feel that Cambridge is inclusive.
79% are proud to say they live in Cambridge. Cambridge, the City
The following service areas were ranked high in both
importance and satisfaction: Emergency Services, remains “beautiful”
Water & Storm Water and Parks, Forestry, Horticulture
& Cemeteries. and “growing.”
SAT I S FAC T I O N S N A P S H OT
The survey indicates the large majority of the population was very pleased with the following:
Quality of Life Quality of Service Value of Services Inclusive City Proud Citizens
www.cambridge.ca/budget Page 9Community Satisfaction Survey
The survey also highlighted opportunities for development. "Roads and Transportation Services,
Economic Development and Development Services" are all areas that were identified as important
services that could use improvement. This information is for the strategic planning process because it
allows the City to identify priorities, objectives and actions to improve in these areas. The full report
from Forum Research Inc. can be found on the City’s strategic plan project page.
SAT I S FAC T I O N S N A P S H OT
The survey indicates Cambridge citizens would like to see improvement in the following:
Roads & Economic Development
Transportation Development Services
EngageCambridge also conducted an online survey that provided supplementary information to frame
the conversation moving forward.
Page 10 City of Cambridge 2021 Draft Budget and Business PlanBudget at a Glance
The 2021 budget has been prepared based on Council direction through the 2021 Budget Timeline
and Guidelines report to the Budget & Audit Committee in June 2020. The budget includes three
components: the tax-supported operating budget, the water utility budget; and the capital budget.
TAX-SUPPORTED OPERATING WATER UTILITY CAPITAL INVESTMENT PLAN
1.00% 1.19%
2021 2021
The 2021 capital budget
tax rate water utility
increase includes
increase
$13 Increase
per average
household $14 Increase
per average
household
$61.7 MILLION
of capital investments.
$1426 Total City
portion per
household $1204 Average total
per household
The capital budget covers
maintenance of existing City assets
and the building of new assets.
TAX- S U P P O R T E D O P E R AT I N G B U D G E T
The tax-supported operating budget covers the daily costs of running city services, excluding water
and sewer services. The 2021 operating budget includes total gross expenditures of $124.5 million, an
increase of $0.3 million over 2020, and a proposed tax rate increase of 1.0 per cent. This equates to
an annual increase of $13 for the average household with an assessment value of $333,200 or $4 per
$100,000 of residential assessment value.
www.cambridge.ca/budget Page 11Budget at a Glance
The City’s portion of the tax
ANNUAL INCREASE
bill is 36 per cent, with the TAX DISTRIBUTION
( CITY PORTION )
Region of Waterloo and local
1.00%
School Board portions making
2021
up the remainder. When the 13% tax rate
SCHOOLS increase
potential tax levy increases for 36%
the Region of Waterloo and
$13 Increase
CITY OF
Education are included, the
CAMBRIDGE
per average
household
$1426
combined overall tax increase 51%
Total city
is $13 or 0.36 per cent for the REGION OF WATERLOO
portion per
average household. household
I M PAC T O N TOTA L TA X B I L L ( B A S E D O N AVG . A S S E S S M E N T O F $ 3 3 3 , 2 0 0 )
IMPACT ON IMPACT ON
SHARE OF 2020 TAX 2021 2021 TAX
TOTAL TAX TOTAL TAX
TAX BILL BILL INCREASE BILL
BILL $ BILL %
City 36% $1,413 1.00% $1,426 $13 0.36%
Region* 51% $2,004 0.00% $2,004 $0 0.00%
School
13% $492 0.00% $492 $0 0.00%
Boards**
Total 100% $3,909 $3,922 $13 0.36%
* As directed by the Region of Waterloo Administration and Finance Committee on September 23, 2020 via report COR-
FSD-20-27 Regional staff were directed to prepare the preliminary 2021 Tax Supported Operating Budget with a total
target property tax impact of 0% inclusive of Police Services, with options for a total property tax impact up to the rate of
projected 2021 infl ation.
** Consistent with recent experience, the 2020 education rate is presented in alignment with the prescribed rate currently
outlined in O.Reg. 400/98 and is subject to change through the approval of fi nal 2021 rates by the Province.
Page 12 City of Cambridge 2021 Draft Budget and Business PlanBudget at a Glance
WAT E R U T I L I T Y B U D G E T
The water utility budget determines the City’s water and wastewater rates, paid on Cambridge water
bills. The 2021 water utility budget includes gross expenditures of $71.5 million, an increase of $1.2
million over 2020. For the 2021 budget, the average annual household water utility bill is $1,204 based
on an average consumption of 204 cubic meters. This represents an annual increase of $14 or 1.19
per cent. The increase is the result of continued investment in the City’s water and sewer networks,
working towards sustainability of the City’s core infrastructure. The Region of Waterloo sets the cost
for purchase and treatment of water and sewer. These costs get passed down to the City's water bill
and will remain unchanged in 2021.
WATER-UTILITY TOTAL ANNUAL INCREASE
d
1.19%
2021
water bill
increase
$14
Increase
59% per average
household
CITY OF
CAMBRIDGE
$1204 Average total
per household
C A P I TA L B U D G E T
CAPITAL INVESTMENT BY STRATEGIC PLAN GOAL MILLIONS
The 2021 capital budget
Parks and Recreation $23.6
includes $61.7 million of
capital investment towards Transportation and Infrastructure $20.6
rehabilitation and renewal
of existing assets, as well Economic Development and Tourism $13.2
as building new assets to
support future growth of Environment and Rivers $1.5
the city. These investments
Community Wellbeing $1.1
are allocated across the
City’s strategic priorities
Governance and Leadership $0.9
outlined in the plan.
Arts, Culture, Heritage and Architecture $0.8
www.cambridge.ca/budget Page 13Budget At A Glance
TOTA L H O U S E H O L D I M PAC T
The City’s 2021 budget has a combined annual impact for the average household of $27, based on an
average assessment value of $333,200 and estimated annual water consumption of 204 cubic meters.
AVERAGE
HOUSEHOLD RATE IMPACT %
IMPACT
City portion of tax bill $13 1.00%
Water bill - City portion $14 1.19%
Water bill - Region portion $0 0.00%
Total water bill impact $14 1.19%
Total annual increase per household $27
The overall increase for the City of Cambridge has traditionally been in line with increases in the City of
Kitchener and City of Waterloo. This is based on annual water consumption of 204 cubic meters and the
respective average residential assessment for each city for that year, and includes the separate stormwater
user rates for Kitchener and Waterloo.
AVERAGE HOUSEHOLD IMPACT COMPARISON
$120
$100
$80
$60
2021
2017 2018 2019 2020
Projected
Cambridge $100 $98 $80 $80 $27
Kitchener $106 $90 $103 $103
Waterloo $81 $71 $73 $73
*The 2021 projections for the cities of Kitchener and Waterloo were not available at budget preparation.
Page 14 City of Cambridge 2021 Draft Budget and Business PlanBudget at a Glance
The average property taxes and water utility bills remain competitive within the Region of Waterloo and
the province, as shown in the below table. In addition to property taxes and water utility rates, the cities of
Kitchener and Waterloo also include a separate storm utility charge not shown in the table below, which
further demonstrates Cambridge’s overall affordability of municipal taxes and fees.
2019
2019 WATER
PROPERTY 2019 AVERAGE
2019 EST. AVG. 2019 AVERAGE BILL AS
TAXES AS RESIDENTIAL
MUNICIPALITY HOUSEHOLD RESIDENTIAL A % OF
A % OF WATER BILL
INCOME TAXES HOUSEHOLD
HOUSEHOLD (200m3)
INCOME
INCOME
Cambridge $100,582 $3,823 3.8% $1,132 1.1%
Waterloo $117,592 $4,191 3.6% $908 0.8%
Kitchener $93,523 $3,552 3.8% $1,098 1.2%
Average of all
$105,849 $3,928 3.7% $1,100 1.0%
Ontario Municipalties
Median of all Ontario
$99,645 $3,773 3.8% $1,061 1.1%
Municipalities
Source: The information in this table is based on the 2019 Municipal Study data by BMA Management Consulting Inc. since
the 2020 Municipal Study is not yet available.
www.cambridge.ca/budget Page 15Who Does What?
U N D E R STA N D I N G M U N I C I PA L VS . R E G I O N A L S E RV I C E S
In addition to federal and provincial services, Cambridge residents and businesses receive services
from two levels of local government: The City of Cambridge and the Region of Waterloo. Below is an
outline of the general services provided by the City and regional levels of government.
CITY OF CAMBRIDGE REGION OF WATERLOO
COMMUNITY WELLBEING
Accessibility and diversity services, Ambassador PUBLIC HEALTH AND SOCIAL SERVICES
Program, animal control, bylaw enforcement,
city-wide emergency planning, crossing guards,
Harm reduction and affordable housing.
fire services, libraries, older adult services, youth
programs.
GOVERNANCE AND LEADERSHIP REGIONAL POLICE AND EMERGENCY RESPONSE
Corporate administration, corporate finance, risk Paramedic and policing services.
management, Service Cambridge, technology
services.
REGIONAL PLANNING
ARTS, CULTURE, HERITAGE AND ARCHITECTURE
Arts and culture programs, art centres, heritage
Environmental and economic development.
conservation, policy planning, special events.
WASTE MANAGEMENT AND WATER TREATMENT
ENVIRONMENT AND RIVERS
Environmental planning, forestry and horticulture
Water collection services, water treatment and
wastewater management.
services, natural areas, parks, trail maintenance.
PARKS AND RECREATION REGIONAL TRANSPORTATION
Aquatics, arenas, bike and skate parks, Cambridge Waterloo Region International Airport, Grand
Farmers’ Market, cemeteries, community centres,
day camps, playgrounds, pools, recreation
River Transit, ION and regional roads.
programs, splash pads, sports fields.
ECONOMIC DEVELOPMENT AND TOURISM
Building permits and inspections, business
attraction and retention, business licensing,
employment land development, planning services,
tourism promotion, visitor information.
TRANSPORTATION AND INFRASTRUCTURE
Asset management, engineering services, facilities
management, parking management, roads and
winter maintenance, sidewalk maintenance,
storm water, street lighting, traffic management,
transportation, water and wastewater.
Page 16 City of Cambridge 2021 Draft Budget and Business PlanHow Are Property Taxes Used?
Property taxes are used to support local municipal services provided by the City, as well as regional
services provided by the Region of Waterloo and an education portion for local School Boards. Only
36 per cent of residential property tax bills are used for City operations. A portion of every City
property tax dollar is invested in the community to provide a wide range of programs and services to
ensure a high quality of life for residents.
TAX DISTRIBUTION MONETARY BREAKDOWN OF CITY PORTION
Fire & Protective Services
13% Parks, Recreation & Culture
SCHOOLS Capital Project Funding
36% Library
CITY OF
CAMBRIDGE Asset Management & Facilities
Roads, Storm & Winter Maintenance
51% Governance & Leadership
Planning, Zoning & Economic Development
REGION OF WATERLOO
Traffic, Transportation & Parking
External Funding
0 100 200 300 400
www.cambridge.ca/budget Page 17The Budget Process
The City’s budget takes into consideration community priorities and feedback. The 2021 budget
process began in June 2020, with the Budget & Audit Committee providing direction to staff to
align the 2021 operating budget with the current Bank of Canada forecasted inflation rate of 1.2
per cent. Direction was also given to prepare a water utility rate increase in line with its long-
range financial plan.
FEBRUARY JUNE JULY- AUG SEPT-OCT NOVEMBER NOVEMBER DECEMBER
2020 2020 2020 2020 2020 2020 2020
Municipal Fees
Community Internal Staff Budget and Audit
Direction Preparation and Charges Public Delegation
Satisfaction Survey Review Committee
Approved
The Community Budget direction The budget The budget The Municipal Public After taking into
Satisfaction is received from is prepared is reviewed Fees and delegation consideration
Survey is made the Budget taking into by senior Charges ensures the feedback
available online and Audit consideration management. schedule community has gathered, the
to gather public Committee. both community The corporate approved by the opportunity draft budget is
opinion on what feedback and executive Council. to have their presented to
matters most in direction from team ensures voices heard the Budget and
the upcoming City Council. the budget by the Budget Audit Committee
year. aligns with the and Audit for review and
strategic plan Committee. approval.
and Council
direction.
Page 18 City of Cambridge 2021 Draft Budget and Business PlanBudget by Strategic Plan
In 2016, Cambridge Council approved the Strategic Plan, Cambridge Connected:
Our Voice. Our Vision. The plan provides a foundation for decision-making,
setting priorities and ongoing performance management in order to deliver high
quality public service that meets the needs of the community.
W H AT D O E S T H E P L A N D O ?
Reflects the voices of the people who live, work, play and learn in
Cambridge.
Connects the community’s vision and goals with the corporate mission,
values and actions of the City.
Helps direct tax dollars to community priorities.
Allows the community to measure progress.
Part of the strategic plan is a focus on governance and leadership – providing
open, transparent, accountable and innovative leadership in local governance
and service delivery. This includes ensuring transparency and accountability
in the City’s finances, providing a wide range of ways that people can become
involved in City decision-making, and creating a culture of innovation and
engagement in Cambridge. The following pages demonstrate how the 2021
budget aligns with the community’s objectives as laid out in the seven goals of
the strategic plan.
www.cambridge.ca/budget Page 19Community Wellbeing
Promote a caring COMMUNITY WELLBEING IN ACTION
community where
people can make Increased focus on pandemic planning development
strong connections Continued focus on the Business Continuity Program to
ensure business processes can continue in the event of
with others and lead a disaster or emergency
safe, healthy and Commitment to public safety with the review of the
Master Fire Plan
productive lives.
Page 20 City of Cambridge 2021 Draft Budget and Business PlanCommunity Wellbeing
BUDGET HIGHLIGHTS BUDGET BREAKDOWN 2020 2021
Capital Investment $26 $12
Operating
Annual Average Cost
Fire Services $387 $401
Per Household Service Cambridge $21 $22
Bylaw $19 $26
Ambassador Program $14 $14
2020 2021
Inclusion $8 $8
Crossing Guards $7 $7
TAX BILL $499 $508
Grants $5 $5
WATER BILL $286 $284 Cemeteries $7 $7
Emergency Management $5 $6
Water Treatment $286 $284
CAPITAL INVESTMENT: $1.1 MILLION
KE Y PROJEC TS
Community Spirit Strategy - Phase 1
Fire Fighter Self-Contained Breathing Apparatus &
PPE
Fire Station Location Study - Master Fire Plan
BUD G E T I MPAC T AND K E Y DR I V ERS
An increase of $9 for the average annual tax bill, supporting the following key strategic investments:
Increased investment in Fire Services for long-term sustainability of equipment renewal, as well
as one-time costs for mandatory training.
Continued commitment in Community Emergency Planning and the pandemic planning
development.
Additional security in By-law services.
A decrease of $2 for the average annual total water bill as water treatment rates from the Region
of Waterloo have been flatlined and water consumption has decreased.
www.cambridge.ca/budget Page 21Governance and Leadership
GOVERNANCE AND LEADERSHIP IN ACTION
Provide open, Implementation of the City's digital transformation and
transparent, the online portal enhancement
Electronic Content Management Roadmap
accountable and Implementation and Enhancement
innovative leadership Continued development and implementation of the
in local governance City's Key Performance Indicators
and service delivery.
Page 22 City of Cambridge 2021 Draft Budget and Business PlanGovernance and Leadership
BUDGET HIGHLIGHTS BUDGET BREAKDOWN 2020 2021
Capital Investment $36 $12
Annual Average Cost Operating
Per Household Corporate Services $177 $177
Administration $25 $24
2020 2021
Offi ce of the City Manager $25 $27
TAX BILL $255 $177 Mayor and Council $16 $18
Corporate Enterprise $18 $18
Corporate Finance -$42* -$99*
CAPITAL INVESTMENT: $0.9 MILLION
KE Y PROJEC TS
Digital Transformation - Online Portal Enhancement
BUD G E T IMPAC T AND K E Y DR I V ERS
A decrease of $78 for the average household as a result of the Safe Restart Agreement from the
Federal Government. This initiative provides funding to help provinces and territories safely restart
their economies, as well as provides funding for municipalities to deliver essential services.
*Services that reduce the total tax bill are shown as negative.
www.cambridge.ca/budget Page 23Arts, Culture, Heritage and Architecture
Promote a creative ARTS, CULTURE AND HERITAGE IN ACTION
environment that East Galt Heritage Conservation District Study for
protection of cultural heritage resources
values our unique
Operation of City-supported special events including
architectural assets Canada Day, Cambridge Celebration of the Arts and
Christmas in Cambridge
and encourages arts,
Continued investment in heritage renovations
culture and heritage.
Increased participation in Idea Exchange programming
through virtual offerings
Page 24 City of Cambridge 2021 Draft Budget and Business PlanArts, Culture, Heritage and Architecture
BUDGET HIGHLIGHTS BUDGET BREAKDOWN 2020 2021
Capital Investment $11 $7
Annual Average Cost Operating
Per Household
Idea Exchange $115 $114
Arts, Culture and
$13 $15
2020 2021 Events
Policy Planning $14 $13
TAX BILL $157 $154
Grants - Arts, Culture
$2 $1
and Events
Farmers’ Market $2 $4
CAPITAL INVESTMENT: $0.8 MILLION
KE Y PROJEC TS
East Galt Heritage Conservation District Study
Library Queen Square Entrance Renovations and Parking Lot
Renewal
Heritage Renovations - Galt Riverbanks Buildings
Mill Race Amphitheatre Consultation and Design
BUD G ET I MPAC T AND K E Y DR I V ERS
A decrease of $3 for the average annual tax bill, with continued focus in the following strategic
investments:
Programming at the Idea Exchange.
Supporting the ongoing operations of the Cambridge Farmers Market with increased COVID-19
restrictions.
www.cambridge.ca/budget Page 25Environment & Rivers
ENVIRONMENT AND RIVERS IN ACTION
Maintain the rivers, Commitment to urban forestry renewal to maintain the
City's urban canopy
waterways and natural
Investment in the Stormwater Master Plan to reflect
environment that this legislation and policy updates
community enjoys. Ongoing street light conversion program, updating
existing streetlight infrastructure to energy-efficient LED
lighting
Page 26 City of Cambridge 2021 Draft Budget and Business PlanEnvironment and Rivers
BUDGET HIGHLIGHTS BUDGET BREAKDOWN 2020 2021
Capital Investment $3 $9
Annual Average Cost Operating
Forestry and
Per Household $33 $33
Horticulture
Stormwater
$12 $11
2020 2021 Management
Grants - Environmental $1 $1
TAX BILL $49 $54 Water Utility
Sewer Treatment $377 $361
WATER BILL $389 $373 Sewer Pumping
$12 $12
Stations
CAPITAL INVESTMENT: $1.5 MILLION
KE Y PROJEC TS
Moffat Creek Channel Restoration
Russ Street Sanitary Pumping Station Renewal
Stormwater Ponds 163 and 155 Retrofits
Stormwater Master Plan Update
BUD G E T I MPAC T AND K E Y DR I V ERS
An increase of $5 for the average annual tax bill, with continued focus in the following areas:
Increased capital investment for the rehabilitation of stormwater management assets.
A decrease of $16 for the average annual total water bill as sewer treatment rates from the Region
of Waterloo have been flatlined and overall consumption has decreased.
www.cambridge.ca/budget Page 27Parks and Recreation
PARKS AND RECREATION IN ACTION
Facilitate and deliver Continued focus on the City's playground replacements
and upgrades
a wide range of Implementation of the Recreation Complex joint
accessible and diverse feasibility study
Construction of the Fountain Street Soccer Facility and
community recreation Preston Auditorium Expansion
opportunities. Delivery of a wide range of recreation and leisure
programming for youth and adults
Page 28 City of Cambridge 2021 Draft Budget and Business PlanParks and Recreation
BUDGET HIGHLIGHTS BUDGET BREAKDOWN 2020 2021
Capital Investment $7 $18
Annual Average Cost Operating
Per Household Parks $88 $89
Aquatic, Leisure and
$39 $48
2020 2021 Youth
Arenas $22 $36
TAX BILL $185 $225 Grants - Aquatic, Leisure
$17 $17
and Youth
Older Adult Services $12 $17
CAPITAL INVESTMENT: $23.5 MILLION
KE Y PROJEC TS
Fountain Street Soccer Facility Construction
Playground Replacement - Lincoln Park
Preston Auditorium Expansion - Construction
Roof Replacement - Hespeler Arena Rink 2
Trail Bridge Replacement - Riverside Park
Older Adult Strategy
BUD G E T I MPAC T AND K E Y DR I V ERS
An increase of $40 for the average household, with continued focus in the following areas:
Supporting aquatics, leisure and youth programming with COVID-19 restrictions.
Implementing COVID-19 restrictions in the older adult recreational programming.
Mitigating expected reduced revenues in Arena programming due to COVID-19.
Replacement and renewal of the City’s recreational infrastructure.
www.cambridge.ca/budget Page 29Economic Development and Tourism
ECONOMIC DEVELOPMENT & TOURISM IN ACTION
Attraction and retention of new businesses to our
community
Support and promote
Maintaining and growing strong relationships with
a strong, dynamic various levels of government, higher education and
industry
and innovative local Continued investment in initiatives identified through the
economy. Core Area Transformation Fund
Continued promotion of Cambridge film industry
generating significant local economic impact
Page 30 City of Cambridge 2021 Draft Budget and Business PlanEconomic Development and Tourism
BUDGET HIGHLIGHTS BUDGET BREAKDOWN 2020 2021
Capital Investment $11 $1
Annual Average Cost
Operating
Per Household
Economic
$13 $14
Development
2020 2021
Development Planning $11 $11
TAX BILL $29 $19 Grants - Economic
$7 $6
Development
Building Permits -$13* -13*
CAPITAL INVESTMENT: $13.2 MILLION
KE Y PROJEC TS
North-South Collector Road Design (Allendale - Middle Block
Road)
Economic Development Strategic Plan
Hespeler Pedestrian Bridge Environmental Assessment
North Cambridge Railway Grade Separation
BUD G E T I MPAC T AND K E Y DR I V ERS
A decrease of $10 for the average household as a result of decreased funding toward capital
investment, which is typical of capital funding to fluctuate from year to year based on current
priorities.
*Services that reduce the total tax bill are shown as negative.
www.cambridge.ca/budget Page 31Transportation and Infrastructure
TRANSPORTATION AND INFRASTRUCTURE
Create and maintain IN ACTION
a highly effective, Implementation of the Work Management
System for City facilities
sustainable and Continued investment in street reconstruction
and ongoing road maintenance
coordinated local
Implementation of the Green Fleet Strategy
infrastructure and
Ongoing water, sewer and road infrastructure
transportation network. maintenance and replacement
Page 32 City of Cambridge 2021 Draft Budget and Business PlanTransportation and Infrastructure
BUDGET HIGHLIGHTS BUDGET BREAKDOWN 2020 2021
Capital Investment $53 $92
Operating
Annual Average Cost
Roads Maintenance $61 $62
Per Household
Asset Management and
$50 $60
Facilities
2020 2021 Traffi c, Transportation and
$35 $36
Parking
TAX BILL $239 $289 Roads Winter Maintenance $28 $28
Engineering Services $12 $11
WATER BILL $514 $547
Water Utility
Water $335 $344
Sewer $179 $203
CAPITAL INVESTMENT: $20.6 MILLION
KE Y PROJEC TS
Beverly Street Pedestrian Underpass
Railway Crossing Improvements
Salisbury Avenue Reconstruction
Sheldon Drive Reconstruction
BUD G E T I MPAC T AND K E Y DR I V ERS
An increase of $50 for the average household, resulting from investment in the following areas:
Increased cleaning in City facilities as a result of COVID-19.
Road maintenance improvements.
Sustainability of equipment renewal.
Replacement and renewal of the City’s infrastructure.
An increase of $33 for the average annual total water bill to support the City’s water and sewer
infrastructure, ensuring availability of clean drinking water.
www.cambridge.ca/budget Page 33Budget Summary
Tax-Supported Operating Budget
Summary
The tax-supported operating budget covers the daily costs of running City services, excluding water
and sewer services. In June of 2020, the Budget & Audit Committee directed staff to prepare the
2021 operating budget in line with the current Bank of Canada forecasted inflation rate of 1.2 per
cent. The 2021 operating budget, which maintains existing service levels consistent with direction
from the Budget & Audit Committee, includes a tax rate increase of 1.0 per cent. This equates to
approximately $13 for the average household with an assessment value of $333,200.
ANNUAL INCREASE
TAX DISTRIBUTION
( CITY PORTION )
13%
SCHOOLS
36%
1.00% 2021
tax-rate
increase
$13 Increase
CITY OF
CAMBRIDGE
per average
household
$1426
51%
Total city
REGION OF WATERLOO
portion per
household
When building the budget, City staff identify the need to maintain existing services, commonly
referred to as the base budget, and separately list items that have one-time impacts. Staff also
identify any enhancements or new additions to existing services and programs, referred to as
growth. Lastly, when capital projects are approved, staff identify if there are any impacts to the
operating budget as a result of the project. These impacts are referred to as impacts from capital
and can include things like operating costs for new facilities, increased maintenance costs, or even
savings from energy efficiency investments.
Page 34 City of Cambridge 2021 Draft Budget and Business PlanTax-Supported Operating Budget
Organizing the tax-supported operating budget into these categories clarifies what makes up the tax
rate increase, as show in the table below.
TAX
ALLOCATION $
LEVY %
2020 Tax Levy 93,769,100
Assessment Growth 656,400
-FWZ*ODM"TTFTTNFOU(SPXUI
Base Budget 454,100 0.48%
One-Time Non COVID-19 62,800 0.07%
One-Time COVID-19 (Including Library) 2,773,800 2.94%
One-Time Safe Restart Agreement (2,773,800) -2.94%
Impacts from Capital 428,400 0.45%
#VEHFU*ODSFBTF
5BY-FWZ
A more detailed breakdown by department is included below, and further details by division can
be found in the Business Plans by Division section on pages 93 to 189, along with the Downtown
Business Improvement Area Levy on page 190.
www.cambridge.ca/budget Page 352020 2020 Budget 2021 Base 2021 2021 2021 One- 2021 Total % Over
Forecast Restated Budget Growth Operating Time Budget (Under)
Impacts 2020
EXPENSES
Mayor and Council $932,304 $1,090,000 $1,106,700 $75,000 $1,181,700 8.41%
Office of the City Manager $2,581,800 $2,419,600 $2,527,100 $63,200 $2,590,300 7.05%
Corporate Services $43,851,437 $44,516,200 $45,857,100 $358,400 ($77,300) $46,138,200 3.64%
Corporate Enterprise $6,803,003 $7,361,800 $7,433,300 $466,700 $7,900,000 7.31%
Community Development $35,423,297 $39,838,100 $40,010,600 $45,400 ($311,500) $39,744,500 (0.23%)
Corporate Expenditures $21,054,439 $20,519,100 $19,331,000 $24,600 ($798,000) $18,557,600 (9.56%)
Library $7,973,100 $8,387,100 $8,454,900 ($86,400) $8,368,500 (0.22%)
Total EXPENSES $118,619,380 $124,131,900 $ 124,720,700 $0 $428,400 ($668,300) $ 124,480,800 0.28%
REVENUES
Mayor and Council ($2,500) ($1,000) ($1,000) ($1,000)
Office of the City Manager ($335,500) ($241,000) ($311,200) ($311,200) 29.13%
Corporate Services ($2,827,190) ($3,427,200) ($3,393,600) $229,800 ($3,163,800) (7.69%)
Corporate Enterprise ($287,300) ($360,700) ($312,500) ($41,800) ($354,300) (1.77%)
Community Development ($10,513,311) ($14,105,400) ($13,630,800) $2,113,200 ($11,517,600) (18.35%)
Corporate Expenditures ($10,632,289) ($11,466,400) ($11,494,000) ($1,525,600) ($13,019,600) 13.55%
Library ($672,100) ($761,100) ($698,000) ($44,500) ($742,500) (2.44%)
Total REVENUES ($25,270,190) ($30,362,800) $ (29,841,100) $0 $0 $731,100 $ (29,110,000) (4.13%)
Total Tax Supported $93,349,190 $ 93,769,100 $ 94,879,600 $0 $ 428,400 $ 62,800 $ 95,370,800 1.71%
ASSESSMENT GROWTH % 0.70% ######
ASSESSMENT GROWTH $ $656,400 ######
Restated Net Expenditure $93,349,190 $ 94,425,500 $ 94,879,600 $0 $ 428,400 $ 62,800 $ 95,370,800 1.00%
Page 36 City of Cambridge 2021 Draft Budget and Business PlanTax-Supported Operating Budget
BASE BUDGET
TAX LEVY
BASE BUDGET IMPACT $ AMOUNT
IMPACT
Maintaining the current level of
services (or base budget) represents Infl ationary impacts and other
$2,794,000 2.96%
a proposed tax rate increase of adjustments
0.48 per cent. This includes rising Debt Charges (1,472,600) (1.56%)
costs due to inflation on salaries
and wages, spending on utilities Effi ciencies (341,800) (0.36%)
and other programs, net of savings Library 130,900 0.14%
realized through efficiencies, and
Assessment growth (656,400) (0.70%)
increased revenues.
Total Base Budget Impacts $454,100 0.48%
The Consumer Price Index (CPI) has
historically averaged approximately
2.0 per cent. In these highly
unprecedented times, forecasting
CPI for 2020 or 2021 is challenging.
Staff was given direction to continue to monitor the rate of inflation with the objective of having a
base budget generally in-line with inflation.
The Bank of Canada was forecasting the rate of inflation to be 1.2 per cent for 2021 during the time
of budget preparation (July). As such, staff prepared the 2021 budget with a target increase of 1.2
per cent with a focus on cost containment and efficiencies.
The key drivers of the 2021 base budget items have a proposed net tax levy impact of 0.48 per cent
and include:
Debt charges from previously approved capital projects with forecasted principle and interest
payments higher than what the City is currently experiencing in interest rates. The current
forecasted debt payments is at a 2 per cent rate of inflation which had a $1.5 million decrease to
the 2021 base budget
Efficiencies from internalizing resources in program areas such as Technology Services and
Clerks Services total $0.3 million
The Idea Exchange includes a $0.1 million increase to the base budget
Assessment growth of $0.66 million or 0.7 per cent helps offset tax rate increases
www.cambridge.ca/budget Page 37Tax-Supported Operating Budget
The assessment growth of 0.7 per cent is slightly below the recent
average assessment growth realized by the City, as demonstrated
in the chart below.
2020 was scheduled to be the next reassessment year, but due to
Assessment growth is the
the pandemic, it has been postponed and we now anticipate 2021
sum of all the changes that
will be the start to a new assessment cycle. We therefore expect
happen to the City's tax
MPAC’s resources will be heavily invested in the reassessment
base during a year, including
cycle which will put pressure on net-new additions in year, while
new construction, major
we continue to face reductions due to assessment appeals.
renovations, demolitions,
New development still appears strong for our region, however and property value appeals.
completion\occupancy of the developments appears to be It does not include changes
delayed due to the pandemic. We anticipate assessment of new in value from market
projects to ramp up later in 2021, which means new assessment is reassessment. Assessment
likely to be captured in 2022. growth effectively is the
increased tax base of the
City. The City receives
ANNUAL ASSESSMENT GROWTH
a variety of planning
1.50% applications; however, the
1.41% time between the completion
of the development
project and the increase in
1.20%
assessment determined by
MPAC can take between
1.01%
0.93% 12 to 18 months before it
0.90%
is reflected in the City’s
assessment records.
0.70%
0.60%
0.37%
0.30%
2017 2018 2019 2020 2021
Page 38 City of Cambridge 2021 Draft Budget and Business PlanTax-Supported Operating Budget
O N E -T I M E
Items that have impacts to the budget for a limited time period are listed separately in the budget as
"one-time" items.
The 2021 tax-supported operating budget includes one-time items that are specifically attributable to
the COVID-19 pandemic and are listed seperatly as
COVID-19 ONE-TIME IMPACT BY
they are offset with federal-provincial government DEPARTMENT
$ AMOUNT
funding from the Safe Restart Agreement and have
no impact on the net tax levy. Mayor and Council $75,000
Offi ce of the City Manager 63,200
On July 16, 2020 the federal government
announced the Safe Restart Agreement which will
Corporate Services 59,800
provide funding to help provinces and territories
safely restart their economies and provide funding Corporate Enterprise 393,900
to municipalities so they can deliver essential
services. As part of the Phase 1 funding allocation, Community Development 1,731,700
the City of Cambridge received $3,069,100 Corporate Expenditures 450,200
calculated on a per-household basis to support
COVID-19 operating costs and pressures. Library 116,500
Due to the early rollout of the City's cost Total COVID-19 One-Time
$2,773,800
Impacts
containment strategies outlined in the April 16,
2020 Council approved report 20-118(CRS), the Safe Restart Agreement Funding ($2,773,800)
City’s 2019 financial impacts of COVID-19 were
greatly minimized. As such, the Safe Restart Net Total $0
Agreement funding has been transferred to the
Rate Stabilization Reserve Fund and will be used to
mitigate the ongoing impacts of COVID-19 by offsetting the 2021 budgeted one-time pandemic costs
and revenue shortfalls.
Other One-Time items in the tax-supported operating budget total $0.06 million and have a proposed
net tax levy impact of 0.07 per cent. These include:
Cooler replacement for the Farmers' Market;
www.cambridge.ca/budget Page 39Tax-Supported Operating Budget Replacement of small equipment in Fire Services; Facilities maintenance costs for Fire stations #1 and #5; Mandatory Hazmat Training in Fire Services; Cost required to complete a chiller retrofit for the City Hall building; First Attendant Contract Position (PT); Contribution towards Wilfrid Laurier University's capstone project; and Reduction in the Idea Exchange. I M PAC T S F R O M C A P I TA L In 2015, City Council approved the construction of a new fire station as an investment towards the City’s strategic goal of Community Wellbeing. This fire station supports community safety through primary response coverage for a growing industrial area and planned residential neighbourhoods, secondary support for house fires in Hespeler/Preston areas, and response to Highway 401 incidents. As the 20 new firefighters needed to operate Fire Station 6 advance from probationary to first-class firefighter, there continues to be operating impacts from the opening of this station which result in a tax increase of 0.31 per cent. The operating impacts associated with the 20 new firefighters progressing through the wage grid will end in 2022. Other impacts from capital projects include licensing and subscription costs due to enhancements in Technolgy Services. G R OW T H Investments in enhancing services and supporting growth of the community, referred to as “growth” in the budget, have no net proposed tax levy impact on the tax-supported operating budget. During budget committee deliberations in January of 2020, it was noted that the Forestry Technician position may be better delivered as an in-house service rather than by contractor. As such, the City is proposing one growth FTE which is offset by a savings in contract services. During preparation of the 2021 budget opportunities were identified for growth in programs and services. These opportunities often require an increase in budget for related costs and FTE's. Due to the financial pressures in the community and the downturn in the economy as a result of the COVID-19 pandemic, staff have not included these additional program and service costs in the 2021 budget. Page 40 City of Cambridge 2021 Draft Budget and Business Plan
Tax-Supported Operating Budget
Comparison to Other Municipalities
The estimated total average tax bill for Cambridge residents (including the Region of Waterloo and
education portions) was below the provincial average for large municipalities in 2019 by almost
10%. This is in comparing a similar type of property across the municipalities, as calculated by BMA
Management Consulting Inc. in their 2019 Municipal Study*. Property taxes in Cambridge are 6th
lowest of large municipalities in Ontario.
ANNUAL TAX BURDEN OF A 2-STOREY HOME IN ONTARIO MUNICIPALITIES POPULATIONS >100,000
$8,000
2019 Property Tax
$7,000
Average ($5,130)
$6,000
$5,000
$4,740
$4,720
$4,636
$4,000
$3,000
$2,000
$1,000
$-
Clarington
Ottawa
Toronto (West)
Kitchener
Toronto (North)
Toronto (South)
Oshawa
Cambridge
Chatham-Kent
Brantford
Greater Sudbury
Oakville
Whitby
Milton
London
Waterloo
Burlington
Kingston
Vaughan
Guelph
Brampton
Richmond Hill
St. Catharines
Hamilton
Markham
Toronto (East)
Windsor
Mississauga
Barrie
Thunder Bay
*2020 BMA Study results have not been published.
www.cambridge.ca/budget Page 41Tax-Supported Operating Budget
The ability to pay, as estimated using average household income, may vary for each
community. This is an important check in determining the affordability of property
taxes. BMA Management Consulting Inc. also calculates this affordability check in their
2019 Municipal Study*. For the average household in Cambridge, 2019 property taxes
represented 3.8 per cent of estimated income, which is in line with the provincial average
and other large municipalities in the region.
2019
2019 PROPERTY
2019 EST. AVG.
AVERAGE TAXES
CITY HOUSEHOLD
RESIDENTIAL AS % OF
INCOME
TAXES HOUSEHOLD
INCOME
Cambridge $100,582 $3,823 3.8%
Waterloo $117,592 $4,191 3.6%
Kitchener $93,523 $3,552 3.8%
Average of all Ontario
$105,849 $3,928 3.7%
Municipalities
Median of all Ontario
$99,645 $3,773 3.8%
Municipalities
*2020 BMA Study results have not been published.
Page 42 City of Cambridge 2021 Draft Budget and Business PlanTax-Supported Operating Budget
Expenses
Major components of the operating budget can be summarized:
SALARIES & BENEFITS - 59%
MATERIALS & SUPPLIES - 11%
FUND TRANSFERS - 10%
OPERATING BUDGET
GROSS EXPENSES
OPERATING BUDGET CONTRACT SERVICES - 10%
GROSS EXPENSES
$124.5 MILLION
$124.2 DEBT CHARGES - 3%
MILLION
UTILITIES - 3%
RENTS & FINANCIAL EXPENSES - 2%
EXTERNAL TRANSFERS - 2%
S A L A R I E S A N D E M P LOY E E B E N E F I T S
As with most businesses, the largest portion of Cambridge’s operating budget
is salaries and benefits, at 59 per cent of expenses. It is represented by the
following groups:
CUPE 1882 – Inside Workers
CUPE 32 – Outside Workers
Cambridge Professional Fire Fighters Association – Fire Personnel
Non-Union / Management Staff
Idea Exchange Staff
The total wage increases in 2021 reflect the collective bargaining agreements
with CUPE 32 and the Professional Fire Fighters Association. The collective
agreement between the City of Cambridge and CUPE 1882 expired on
December 31, 2019 and is currently being negotiated. Therefore, the amount
related to CUPE 1882 reflects the anticipated budgetary needs.
www.cambridge.ca/budget Page 43Tax-Supported Operating Budget P R O G R A M M AT E R I A L S A N D S U P P L I E S Materials and supplies represent 11 per cent of expenses. Program-related costs are reviewed and adjusted to reflect planned costs for 2021, taking into consideration previous years’ actual costs and inflation where appropriate. FUND TRANSFERS Transfers to reserve funds, which represent 10.2 per cent of expenses include: Contribution towards the capital budget Contribution towards replacement of equipment Contribution to the Hydro Dividend Reserve Fund used towards the debt payments of capital projects Annual contribution towards the election, to spread the cost over the term of Council Other reserve fund transfers, in accordance with the reserve and reserve fund by-law The most significant transfer is the contribution towards the capital budget, representing the amount of tax levy funding that is allocated annually to capital projects based on the 10-year capital budget and forecast and lifecycly costing of City assets. As part of the 2021 operating budget, $10.2 million has been allocated to the capital reserve funds. Equipment reserves are used to fund the eventual replacement of equipment. The City owns and operates fleet and fire equipment with an estimated replacement value of approximately $47.3 million. Based on lifecycle costing, the City’s equipment reserve fund is currently underfunded. To build towards sustainability, the 2021 base budget includes a contribution of $2.7 million towards the fleet equipment reserve fund, an increase of $0.5 million over 2020. Only equipment that is considered critical for replacement based on its condition has been included in the 2021 Budget. Page 44 City of Cambridge 2021 Draft Budget and Business Plan
Tax-Supported Operating Budget C O N T R AC T S E R V I C E S The City spends approximately $12.8 million in contract services, which represents 9.5 per cent of the City’s expenses. Contracted services that fall under this category include City Hall security, animal control, forestry, technology services, as well as other contracts related to delivering various programs within the city. DEBT CHARGES The City of Cambridge adheres to a debt management policy which provides assurance that it can meet its financial obligations in a timely manner and in accordance to legislative and regulatory requirements. As per the City’s debt policy, the tax-supported debt charges will be limited to 10 per cent of the City’s own source revenues. The total debt payment included in the 2021 operating budget is $4.4 million, well below the prescribed debt limit that is set by the province and the City's own debt policy. UTILITIES Utility costs represent 2.8 per cent of the City’s expenses. They are reviewed and adjusted to reflect planned costs for 2021, taking into consideration previous years’ actual costs and inflation where appropriate. Hydro includes a 5% increase in 2021 and natural gas includes a 15% increase in forecasted projections. www.cambridge.ca/budget Page 45
Tax-Supported Operating Budget RENTS & FINANCIAL EXPENSES The City’s rent and financial expenses make up 2.4 per cent of the gross expenditures. An ongoing initiative in this category is $1.6 million, representing a proposed tax rate increase of 1.7 per cent, towards supporting development and intensification in the City. Specifically, this provides funding for development charge (DC) exemptions as required under the Development Charges Act, 1997. The majority of these exemptions result from developments in the City’s three core areas or from brownfield development, as per the City’s DC By-Law 94-19, which supports the City’s strategic plan goal of promoting a strong, dynamic and innovative local economy. This category also includes the City's insurance coverage, with a budget of $1.1 million. The City is a member of the Waterloo Regional Insurance Pool which includes all municipalities in the Region. An annual premium is paid to the pool to cover insurance claims over and above $50,000. The City is responsible for covering any claim costs up to the deductible amount and has set up a self-insurance reserve to cover claim costs in excess of what is budgeted annually. In recent years, insurance premiums and claims have exceeded the annual budget and a draw from the reserve has been required to cover annual costs. Due to the financial pressures in the current economy, the budget for insurance premiums and claims has remained at the same amount as in 2020 and any deficit realized during 2021 will continue to be funded from the Self Insurance Reserve Fund. This approach is not sustainable and increases to future years budgets will be required to address this imbalance. Other costs in this category include the tax incentive grant to support brownfield development in the city’s core areas, audit fees, merchant fees for point of sale payments, lease agreements, and property taxes for non-exempt properties owned by the City. EXTERNAL TRANSFERS External transfers represent 2 per cent of expenses. Approximately $2.5 million is provided in funding to various organizations. These external transfers represent approximately 1.8 per cent of the City's tax levy. The largest portion of this funding is provided to the Cambridge Neighbourhood Associations in the amount of $1.2 million. Funding is also provided to groups that apply to the City's Grants to Groups program as well as other grant funding programs the City offers. There are many other organizations in the community that receive funding from the City's annual budget. For details refer to Appendix C . The majority of the overall decrease in 2021 over 2020 of $171,400 is due to the decrease in the contract with the Chamber of Commerce/Visitor Information centre, which expires on December 30, 2019 and the one-time grant to the Cambridge Symphony Orchestra in 2020. Page 46 City of Cambridge 2021 Draft Budget and Business Plan
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